Lawsuit and home loans?

[IRattending2021]

One of my colleague who is a new grad is being dragged through a meritless med mal lawsuit that will probably go for another few years. She has a young family and would love to own a home but think that there is no way she can get a home loan.

Has anyone dealt with this before?

---

Members don't see this ad.

 

[bravotwozero]

One of my colleague who is a new grad is being dragged through a meritless med mal lawsuit that will probably go for another few years. She has a young family and would love to own a home but think that there is no way she can get a home loan.

Has anyone dealt with this before?

Yes. Pain in the butt for sure, but you should still be able to get approved. She’ll need to provide proof of malpractice insurance, and a letter from her attorney stating the case is very defensible, and that her malpractice coverage amount is more than adequate even if she loses.

That’s what I did, and eventually it got approved. If I’m not mistaken, the white coat investor also went through the same thing, he wrote about that on his blog.